BANGKOK, Oct. 1 (Xinhua) -- Thailand's business sentiment weakened in September across nearly all sectors as geopolitical tensions in the Middle East flared up and the impact of government stimulus measures began to wane, data from the central bank showed on Thursday.
According to the Bank of Thailand, the Southeast Asian country's business sentiment index (BSI) fell to 48.1 last month from 49.8 in August, led by declines in production, performance, and cost sub-components.
The non-manufacturing index retreated to 47.5, with decreases across multiple sectors, notably the transportation sector, which faced mounting cost pressures from rising diesel prices amid the renewed regional conflict, the central bank said in a statement.
Furthermore, confidence among the retail trade sector dropped as consumer product demand slowed and state stimulus support began to fade.
The non-manufacturing reading has now stayed below the 50 no-change mark for the 10th consecutive month, indicating weak domestic spending power.
Meanwhile, the manufacturing index slipped below the 50-point threshold to 48.8, with agricultural product manufacturers reporting that El Nino-induced drought conditions hampered their output and performance.
Sentiment among electronics producers also dipped after a prolonged period of strong growth amid uncertainty surrounding U.S. tariff measures, though their index stayed above 50.
In the September survey, the three-month expected BSI climbed to 50.8, edging up from 50.5 a month earlier, with improvements seen in all sub-components except for cost, which fell due to concerns about rising oil prices.
The forward-looking non-manufacturing index rose slightly, led by the hotel and restaurant and the trade sectors, supported by the tourism high season and the extension of the government's co-payment scheme.
The expected manufacturing index remained stable, with the plastic packaging industry benefiting from higher production and order sub-indices during the tourism peak season.
The survey was based on 620 respondents from large and medium-sized firms. ■